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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: virgil vancleave who wrote (13103)	8/1/2000 9:27:12 PM
From: Herm	Read Replies (2) \| Respond to of 14162

Howdy Virgil, Time for some bear traps???? Sure, looks like it! My number #1 short with a LEAP put is PWJ. Paine Webber Group got hyped up from the buy out offer. That chart is showing sky high RSI never reached before for this stock and the upper BBs was elongated out of sight. Very high volatility value for the overpriced calls and the undervalued PUTs are dirt cheap! stockcharts.com[L,A]WALLYYMY[PD20,2!C20!F][VC60][IUB14!LG] On July 12, A.G. Edwards stock rose with other brokerages and call volume grew although implied vols stayed flat after Swiss financial group UBS AG (UBS) (UBSZN.S) said it would buy PaineWebber Group Inc. (PWJ) in a $10.8 billion deal. Since early July, stock of St. Louis-based A.G. Edwards has risen steadily, and on Friday it set a new 52-week high at 56. Early Monday afternoon the stock was down 5-3/8 at 49-11/16 on New York Stock Exchange volume of 828,000. --------------------------------------------------------- I loaded up on the 5s IFMX JAN02 call LEAPs which are dirt cheap last week when the stock hit $4.00. WOW! This stock has been there before. Rock N Roll! Good for the preemies. ---------------------------------------------------------- "A hedge wrapper as herm calls it I think." That's not me, but, Shane at his new web sit. callsandputs.com Folks can read about what is hedge wrapper is and see examples. callsandputs.com callsandputs.com He has a load of hedge wappers and one for August paying ROI of 4.76%! Stock call/put call/put Call$/Put$ stock$ -------------------------------------------------------- PWAV VFQHR/VFQTP Aug 31.62/Aug 26.62 3.125/1.625 $31.5 ----------------------------------------------------------- "hdd, which is selling at just above cash level." Super low RSI and there should be price support in the $7.50+ range. stockcharts.com[L,A]DALLYYMY[PD20,2!C20!F][VC60][IUB14!LG] See Ya!

To: virgil vancleave who wrote (13103)	8/3/2000 3:11:01 AM
From: jaytee	Respond to of 14162

Virgil and Others: Hi Virgil. Always enjoy your slant on things. Bear or not. You seem to have a plan . . . and follow it thru. NMGC. Hmmmm . . . interesting. How about buying JAN 01 5'S @ 1/2 AND SELLING OCT 7.50'S @ 1/4? Looks like 50 pct ROI to me (on the call) and potentially another 2.50 (unlikely) if you're called out . . . have to exercise your 5's and sell (gladly)to the person calling you out for 7.50. With the stock price at this level (3.00 ). . . the latter seems unlikely. But how do you beat 50pct on call? Am I missing something? Is there enough volume and OI in this stock to warrant one's taking a position? Only pitfall is stock price tanking further? (on their news of restructuring . . . . and lower rev's? for next few qtrs? What do you think? jaytee